On May 28, Saudi Arabia’s central bank, the Saudi Arabian Monetary Authority, reported that its net foreign assets tumbled below $500 billion ($493 to be exact) in April. Over the past three years, Saudi foreign reserves have dropped by a third from a peak of more than $730 billion in 2014. What is noteworthy is that the pace of the decline in reserves this year has puzzled economists.

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Excellent analysis Shahir-jaan. I had no idea that their reserves were decreasing at such a rapid pace.

“the pace of the decline in reserves this year has puzzled economists who see little evidence of increased government spending, fueling speculation it’s triggered by capital flight and the costs of the kingdom’s war in Yemen,”

Perhaps it's due to increased corruption?

And sure, KSA can quickly raise boatloads of money by selling shares of oil giants Saudi Aramco, Saudi Arabian Oil Co. etc. to the tune of 100's of billions of dollars, but it's still hard to see how they can grow their stagnant economy in a sustainable way. At the end of the day their future still seems to largely depend on the price of oil -- a precarious situation to be sure.